CR-2025-001156 - [2025] EWHC 2129 (Ch)

MOL’s main asset is its shares in MOSA. The benefit of the PSA is MOSA’s main asset. The Oilfield is “thermal heavy”, meaning that the oil it contains is of such viscosity that the introduction of thermal energy is required to facilitate extraction, giving rise to additional cost and complexity, said to make the securing of investment for the Oilfield considerably more difficult. Mr Reynolds explains in his evidence the challenging features of the Oilfield, how this makes it difficult to explore and why only specialist investors such as BMK are able and willing to commit the necessary investment.

The inability to secure capital is also said to explain why only 260,000 barrels have ever been produced from the Oilfield during a test production and development phase between 2013 and 2016. Of those, MOSA’s own operations have consumed 111,000 barrels, leaving 150,000 for sale. More than 70,000 barrels have been sold between 2022 and 2024, yielding US$8.5m, but that is now said to be insufficient to cover MOSA’s overheads, leading to BMK funding MOSA by ad hoc loan, increasing the intercompany loans discussed below.